HAD Ipswich Town been on course for promotion to the Premier League at the end of this season, the club would be facing a pay-out of nearly £11million, its annual report and accounts reveal.
“Contingent liabilities” listed in the report include additional payments which would have become due in the event of promotion to players, coaches, staff and the former clubs of some players under bonus schemes and transfer terms.
The value of these, together with the entitlements of season ticket holders under an incentive scheme and payments to Convertible Loan Note holders which would also be triggered by promotion, total £10.2m. In addition, £700,000-worth of Convertible Loan Notes would become payable.
However, the figure of £10.2m represents a fall compared with the previous year, when the club would have faced a pay-out of £12.6m had promotion been achieved.
The increase in income resulting from promotion, particularly in respect of television fees, would, of course, offset these sums several times over.
Other contingent liabilities, involving sums potentially due to past and present players in respect of signing-on, bonus and loyalty clauses has also fallen, from £1.9m to £1.1m.
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